Chartered Accountant
1113 Points
Joined December 2007
Industrial Undertaking has not been defined in Section 35D. The term ‘industrial undertaking’ is capable of wider definition having regard to the requirements set out under the provisons of various sections under the I.T> Laws and it cannot be merely limited to the undertakings engaged in manufacture, produce and processing of articles or goods . Futher conditions are also imposed . Expression ‘industrial undertaking’, used in sections 80HH and 80-I, has to be considered to mean essential trade activity of the assessee and not otherwise. The word ‘derive’ means derived from industrial activity and industrial activity means business in which industry is involved - CIT v. Paras Oil Extraction Ltd. [1998] 96 Taxman 234/230 ITR 266 (MP).